HOUSTON, May 27 /PRNewswire-FirstCall/ -- Universal Compression, Inc.
("Universal Compression"), a wholly owned subsidiary of Universal Compression
Holdings, Inc. (NYSE: UCO), announced today that it has completed a private
offering of $175 million aggregate principal amount of its 7 1/4% Senior Notes
due 2010. The net proceeds from the sale, together with other available
funds, will be used to purchase Universal Compression's outstanding 9 7/8%
Senior Discount Notes due 2008 (the "9 7/8% Notes") tendered pursuant to the
previously announced tender offer for the 9 7/8% Notes.
Of the aggregate $229.75 million principal amount of 9 7/8% Notes
outstanding, $169.15 million principal amount was tendered pursuant to the
tender offer by 5:00 p.m., New York City time, on May 20, 2003 (the "Early
Tender Date"). Universal Compression has accepted for purchase all
9 7/8% Notes validly tendered prior to the Early Tender Date. Holders of
9 7/8% Notes that were not tendered prior to the Early Tender Date may tender
their 9 7/8% Notes on or prior to midnight, New York City time, on
June 11, 2003, unless extended or earlier terminated (the "Expiration Date").
Universal Compression also announced that, pursuant to the terms of the
indenture governing the 9 7/8% Notes, it has called the outstanding
9 7/8% Notes for redemption on June 26, 2003 (the "Redemption Date"). The
redemption price will be equal to 104.938% of the principal amount of the
9 7/8% Notes, plus accrued and unpaid interest to, but not including, the
Redemption Date. Universal Compression expects to retire all of the
outstanding 9 7/8% Notes pursuant to the tender offer and the redemption.
This press release shall not constitute an offer to purchase or a
solicitation of acceptance of the tender offer, which may be made only
pursuant to the terms of the offer to purchase and related letter of
transmittal. In any jurisdiction where the laws require the offer to be made
by a licensed broker or dealer, the offer shall be deemed made on behalf of
Universal Compression by Lehman Brothers Inc. or one or more registered
brokers or dealers under the laws of such jurisdiction.
Universal Compression, headquartered in Houston, Texas, is a leading
natural gas compression services company, providing a full range of contract
compression, sales, operations, maintenance and fabrication services to the
domestic and international natural gas industry.
Statements about Universal's outlook and all other statements in this
release other than historical facts are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements rely on a number of assumptions concerning future
events and are subject to a number of uncertainties and factors, many of which
are outside Universal's control, which could cause actual results to differ
materially from such statements. While Universal believes that the
assumptions concerning future events are reasonable, it cautions that there
are inherent difficulties in predicting certain important factors that could
impact the future performance or results of its business. Among the important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements are the demand for Universal's
products and services and worldwide economic and political conditions. These
and other risk factors are discussed in Universal's filings with the
Securities and Exchange Commission, copies of which are available to the
public. Universal expressly disclaims any intention or obligation to revise
or update any forward-looking statements whether as a result of new
information, future events, or otherwise.
SOURCE Universal Compression, Inc.